| Intermediary business (IB) is the business that doesn't create assets and liabilities on commercial bank's balance sheet and forms bank's non-interest income. Because IB doesn't create assets and liabilities on commercial bank's balance sheet, IB have some characteristics, such as stable income, low cost and strong service function, compared with assets business and liabilities business. Since 80' of 20th, IB has been becoming the most important businesses and main income resource of foreign commercial banks. The income from IB contribute 60% total income in HSBC, and also contribute as high as 80% in CITI BANK .by the contrast, the same proportion in state-owned banks is just within 5%-8%, so, developing IB business is very significant for Chinese banks to syncretize with international bank industry and to have continuous development after entering WTO, and is also necessary for Chinese bank industry to increase profit, improve service and assets structure, and enhance comprehensive competitiveness.IB of Chinese bank industry is rapidly developing, but problem also become more. The developing tendency has three aspects: 1. Species is adding evidently. 2. Turnover is rising.3. Income is rising. The problems have eight aspects: 1. Scale is too small2. Debit is too large.3. Technology level is comparatively low.4. Cost is too high, and income is too low.5. Few innvotions.6. Wrong concept about IB.7. The system of management, administration, stimulation, and constriction are not very effective.8. Marketing concept is stale and marketing method is feeble.In Western, some scholar has created a model-"trick" to explain the reasons of the appearance and development of IB. These reasons include: technology, interest risk, regulation, competition, capital adequacy and rational-self-interest (RSI). If we add some important factors, such as exchange rate risk, inflation risk, and treasure effect into this model, the model can get further perfect. Because model "trick" was created on the background of developed countries, and some implicit conditions in this model were inadequate in present China. These factors include: laws environment, human resources, social credit system. On the basis of expended model "trick", through the comparative analysis between Chinese IB and American IB, my thesis draw a conclusion: lacking of RSI and low competition is the really deep reason that impede the development and innovation of Chinese commercial banks' IB.But how to promote a rapid development of IB? Using the theory of new institution economics, we can draw another conclusion: merely depending government's power or market competition is not enough to guarantee the development of state-owned commercial banks' efficiency and the development of IB. The only effective method, which can guarantee the improvement of efficiency of commercial banks, is processing reform of state-own Commercial banks' property and enhancing competition among these banks at the same time.Generally, IB of Chinese commercial banks is gradually pacing into a gold period, but there are some problems need to pay attention to. One is the development of different areas. According to different natural conditions and economic conditions, each bank should effort to explore its comparative advantage. One is the cooperation between IB and traditional business. The relationship of IB and traditional business is depending each other and enhancing each other. In view of present economic and financial environment of china, IB surely has bright future, but make small profit now. So, when clash between developing of IB and stability of traditional business appears, banks should resolve it correctly according to long-run interest. The last one is the cooperation among different departments in banks. Even if IB is comparative independent, cooperation is still a premise to its healthy development. The development of IB is a systematic work, and we can complete it from three aspects: 1.Profit first. 2.Fastening the pace of integrity of IB. 3.Consolidating management... |
